Economics
ECB May Delay First Rate Hike to Late 2020, Deutsche Bank Says
The European Central Bank skyscraper headquarters stand illuminated at dusk in Frankfurt, Germany.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Economists at Germany’s largest lender predict the European Central Bank will hold back on interest-rate increases until December 2020 as growth in the euro area is “slowing rapidly.”
Declining external demand is starting to spill over to domestic spending, Deutsche Bank economists said on Thursday. They previously predicted borrowing costs would rise in March 2020. Markets are pricing the first 10 basis-point hike in the deposit rate for June next year.